Kiran Reddy asks banks to sanction fresh crop loans

Interest-free crop loans would benefit 10 mn farmers in the state

Chief minister N Kiran Kumar Reddy has requested the state-level bankers' committee (SLBC) to adopt a liberal approach in the reschedulement of crop loans and sanction of fresh short-term loans to the farmers in all the calamities-affected mandals.

"Though the state received good monsoon this season, heavy rains and a series of cyclones during Sept-Oct 2013 upset the position. The reschedulement of kharif loan disbursals in respect of rabi may be completed by January," he said.

Addressing the 182nd SLBC meeting here on Saturday, Reddy said interest-free crop loans would benefit 10 million farmers in the state.

He said according to the Centre's directions, all banks should reach the target of 15 per cent within the priority sector lending in providing financial assistance to the minority communities.

Lending to minorities was at Rs 12,124 crore in 2011-12 and Rs 13,583 crore as on September 2013. Lending by banks to the priority sector has declined from 6.75 per cent (2011-12) to 6.40 per cent (2012-13) and further to 6.03 per cent by September 2013. This trend needs to be arrested immediately, he added.

Pointing out that even 50 per cent of the targets under SC/ST financing was not achieved year after year, Reddy said the SLBC might make the issue of lending to SC/ST and minorities a permanent item on their agenda.

On financing the MSME sector and sick units, he said if banks took up rehabilitation of sick or potentially sick units, his government could provide reliefs relating to power, sales tax dues, etc.